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Document And Entity Information - USD ($) $ in Millions	12 Months Ended
Document And Entity Information - USD ($) $ in Millions	Dec. 31, 2011	Mar. 06, 2012	Jun. 30, 2011
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2011
Entity Registrant Name	AtriCure, Inc.
Entity Central Index Key	0001323885
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		16,480,265
Entity Well-known Seasoned Issuer	No
Entity Public Float			$ 143.9
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No

Consolidated Balance Sheets - USD ($)	Dec. 31, 2011	Dec. 31, 2010
Assets
Cash and cash equivalents	$ 9,758,903	$ 4,230,709
Short-term investments	4,423,763	8,340,028
Accounts receivable, less allowance for doubtful accounts of $36,694 and $8,764, respectively	9,513,894	9,480,064
Inventories	6,563,138	5,680,033
Other current assets	933,028	2,917,571
Total current assets	31,192,726	30,648,405
Property and equipment, net	2,350,760	2,723,227
Intangible assets	44,791	89,375
Other assets	270,613	254,707
Total Assets	33,858,890	33,715,714
Liabilities and Stockholders' Equity
Accounts payable	5,270,084	4,511,516
Accrued liabilities	3,995,880	6,330,405
Current maturities of debt and capital leases	1,542,848	2,193,356
Total current liabilities	10,808,812	13,035,277
Long-term debt and capital leases	4,925,775	661,624
Other liabilities	2,509,599	3,282,883
Total Liabilities	18,244,186	16,979,784
Commitments and contingencies (Note 10)
Stockholders' Equity:
Common stock, $.001 par value, 90,000,000 shares authorized and 16,369,221 and 15,663,585 issued and outstanding, respectively	16,369	15,664
Additional paid-in capital	118,852,948	114,402,234
Accumulated other comprehensive(loss) income	(37,517)	79,625
Accumulated deficit	(103,217,096)	(97,761,593)
Total Stockholders' Equity	15,614,704	16,735,930
Total Liabilities and Stockholders' Equity	$ 33,858,890	$ 33,715,714

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2011	Dec. 31, 2010
Consolidated Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 36,694	$ 8,764
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	16,369,221	15,663,585
Common stock, shares outstanding	16,369,221	15,663,585

Consolidated Statements Of Operations - USD ($)	12 Months Ended
Consolidated Statements Of Operations - USD ($)	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements Of Operations [Abstract]
Revenue	$ 64,402,409	$ 59,006,188	$ 54,533,558
Cost of revenue	17,405,985	13,618,454	12,750,745
Gross profit	46,996,424	45,387,734	41,782,813
Operating expenses:
Research and development expenses	11,856,821	11,530,820	11,414,889
Selling, general and administrative expenses	39,870,139	37,048,715	35,112,006
Goodwill impairment			6,812,389
Settlement reserve			3,955,405
Total operating expenses	51,726,960	48,579,535	57,294,689
Loss from operations	(4,730,536)	(3,191,801)	(15,511,876)
Other income (expense):
Interest expense	(814,427)	(861,573)	(812,326)
Interest income	15,930	22,219	51,089
Other	104,418	258,582	(280,514)
Loss before income tax expense (benefit)	(5,424,615)	(3,772,573)	(16,553,627)
Income tax expense (benefit)	30,888	19,050	(58,639)
Net loss	$ (5,455,503)	$ (3,791,623)	$ (16,494,988)
Basic and diluted net loss per share	$ (0.35)	$ (0.25)	$ (1.13)
Weighted average shares outstanding - basic and diluted	15,671,993	15,095,250	14,563,710

Consolidated Statements Of Stockholders' Equity And Comprehensive Income (Loss) - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2008	$ 14,275	$ 106,636,653	$ (77,474,982)	$ (56,789)		$ 29,119,157
Balance, shares at Dec. 31, 2008	14,274,884
Issuance of common stock under equity incentive plans	$ 685	(357,801)				(357,116)
Issuance of common stock under equity incentive plans, shares	684,790
Issuance of common stock under employee stock purchase plan	$ 117	280,918				281,035
Issuance of common stock under employee stock purchase plan, shares	117,471
Non-employee stock option fair market value adjustment		19,675				19,675
Share-based employee compensation expense		3,865,921				3,865,921
Issuance of common stock under warrants	$ 276	454,721				454,997
Issuance of common stock under warrants, shares	276,143
Unrealized gain (loss) on investments				2,685	$ 2,685	2,685
Foreign currency translation				198,394	198,394	198,394
Net loss			(16,494,988)		(16,494,988)	(16,494,988)
Comprehensive loss					(16,293,909)
Balance at Dec. 31, 2009	$ 15,353	110,900,087	(93,969,970)	144,290		17,089,760
Balance, shares at Dec. 31, 2009	15,353,288
Issuance of common stock under equity incentive plans	$ 214	231,874				232,088
Issuance of common stock under equity incentive plans, shares	213,709
Issuance of common stock under employee stock purchase plan	$ 97	498,423				498,520
Issuance of common stock under employee stock purchase plan, shares	96,588
Non-employee stock option fair market value adjustment		19,154				19,154
Share-based employee compensation expense		2,752,696				2,752,696
Unrealized gain (loss) on investments				(3,006)	(3,006)	(3,006)
Foreign currency translation				(61,659)	(61,659)	(61,659)
Net loss			(3,791,623)		(3,791,623)	(3,791,623)
Comprehensive loss					(3,856,288)
Balance at Dec. 31, 2010	$ 15,664	114,402,234	(97,761,593)	79,625		16,735,930
Balance, shares at Dec. 31, 2010	15,663,585
Issuance of common stock under equity incentive plans	$ 631	860,290				860,921
Issuance of common stock under equity incentive plans, shares	631,685
Issuance of common stock under employee stock purchase plan	$ 74	668,974				669,048
Issuance of common stock under employee stock purchase plan, shares	73,951
Non-employee stock option fair market value adjustment		7,698				7,698
Share-based employee compensation expense		2,931,290				2,931,290
Reclassification of non-employee option liability		(17,538)				(17,538)
Unrealized gain (loss) on investments				2,075	2,075	2,075
Foreign currency translation				(119,217)	(119,217)	(119,217)
Net loss			(5,455,503)		(5,455,503)	(5,455,503)
Comprehensive loss					$ (5,572,645)
Balance at Dec. 31, 2011	$ 16,369	$ 118,852,948	$ (103,217,096)	$ (37,517)		$ 15,614,704
Balance, shares at Dec. 31, 2011	16,369,221

Consolidated Statements Of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements Of Cash Flows - USD ($)	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash flows from operating activities:
Net loss	$ (5,455,503)	$ (3,791,623)	$ (16,494,988)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Share-based compensation expense	2,938,988	2,771,850	3,885,596
Depreciation	1,877,564	2,165,006	2,132,300
Amortization of deferred financing costs	96,916	111,065	87,473
Write-off of deferred financing costs and discount on long-term debt	153,101		102,485
Amortization of discount on long-term debt	21,707	185,314	169,106
Amortization of intangible assets	44,584	198,278	281,500
Amortization/accretion on investments	61,256
Loss (gain) on disposal of equipment	56,415	(36,604)	5,517
Gain on sale of intellectual property	(300,000)
Change in allowance for doubtful accounts	28,183	(15,636)	(9,581)
Goodwill impairment			6,812,389
Settlement reserve			3,955,405
Changes in assets and liabilities:
Accounts receivable	(198,947)	(2,299,937)	(685,986)
Inventories	(923,512)	(850,147)	1,504,706
Other current assets	(16,986)	524,339	169,163
Accounts payable	787,499	893,281	(1,550,090)
Accrued liabilities	(975,896)	(237,071)	140,624
Other non-current assets and non-current liabilities	(181,795)	348,451	(85,671)
Net cash (used in) provided by operating activities	(1,986,426)	(33,434)	419,948
Cash flows from investing activities:
Purchases of equipment	(1,522,311)	(1,813,812)	(1,360,459)
Proceeds from sale of equipment	89,476	5,238	2,000
Purchases of available-for-sale securities	(12,649,107)	(11,124,852)	(8,015,866)
Maturities of available-for-sale securities	16,506,154	9,598,491	1,201,877
Proceeds from sale of intellectual property	300,000
Change in restricted cash and cash equivalents			6,000,000
Net cash provided by (used in) investing activities	2,724,212	(3,334,935)	(2,172,448)
Cash flows from financing activities:
Payments on debt and capital leases	(4,046,497)	(2,227,431)	(7,493,269)
Proceeds from borrowings of debt	7,500,000		6,500,000
Payment of debt fees and premium on retirement of debt	(80,930)	(67,619)	(235,110)
Proceeds from issuance of common stock under employee stock purchase plan	669,048	498,520	281,035
Proceeds from stock option exercises	1,588,065	353,356	33,335
Shares repurchased for payment of taxes on stock awards	782,506
Net cash provided by (used in) financing activities	4,847,180	(1,443,174)	(914,009)
Effect of exchange rate changes on cash	(56,772)	136,827	123,483
Net increase (decrease) in cash and cash equivalents	5,528,194	(4,674,716)	(2,543,026)
Cash and cash equivalents-beginning of period	4,230,709	8,905,425	11,448,451
Cash and cash equivalents-end of period	9,758,903	4,230,709	8,905,425
Supplemental cash flow information:
Cash paid for interest	405,272	417,516	460,927
Cash paid for income taxes	30,480	29,639	17,300
Non-cash investing and financing activities:
Accrued purchases of property and equipment	43,765	61,976	15,746
Receivable related to sale of property and equipment		$ 89,469
Assets acquired through capital lease	$ 59,560		105,651
Warrant issued in conjunction with credit facility			$ 455,000

Description Of Business And Summary Of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Description Of Business And Summary Of Significant Accounting Policies [Abstract]

Description Of Business And Summary Of Significant Accounting Policies

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of the Business—AtriCure, Inc. (the "Company" or "AtriCure") was incorporated in the State of Delaware on October 31, 2000. The Company develops, manufactures and sells devices designed primarily for the surgical ablation of cardiac tissue and devices for the exclusion of the left atrial appendage. The Company sells its products to hospitals and medical centers globally. International sales were $15,470,989, $11,488,302 and $10,414,357 in 2011, 2010 and 2009, respectively.

Principles of Consolidation—The Consolidated Financial Statements include the accounts of the Company and AtriCure Europe B.V., the Company's wholly-owned subsidiary incorporated in the Netherlands. All intercompany accounts and transactions have been eliminated in consolidation.

Cash and Cash Equivalents—The Company considers highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents in the accompanying Consolidated Financial Statements.

Short-Term Investments—The Company places its investments primarily in U.S. Government agencies and securities, corporate bonds and commercial paper with maturities less than one year. The Company classifies all investments as available-for-sale. Such investments are recorded at fair value, with unrealized gains and losses recorded as a separate component of stockholders' equity. The Company recognizes gains and losses when these securities are sold using the specific identification method.

Revenue Recognition—The Company accounts for revenue in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605, "Revenue Recognition" ("ASC 605"). The Company determines the timing of revenue recognition based upon factors such as passage of title, installation, payment terms and ability to return products. The Company recognizes revenue when all of the following criteria are met: (i) there is persuasive evidence that an arrangement exists; (ii) delivery of the products and/or services has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured.

Revenue is generated from the sale of the Company's surgical devices. Our surgical devices consist primarily of individual disposable handpieces and equipment generators. Our customers need the combination of the generator and the handpieces to have a functional system. The Company believes that the generator and handpiece are considered a single unit of accounting under ASC 605 because neither the generator nor handpiece have value to the customer on a standalone basis. Therefore, because the customer needs both the generator and handpiece to have a functional system, revenue is recognized upon the later of delivery of the generator or the handpiece.

Pursuant to the Company's standard terms of sale, revenue is recognized when title to the goods and risk of loss transfers to customers and there are no remaining obligations that will affect the customers' final acceptance of the sale. Generally, the Company's standard terms of sale define the transfer of title and risk of loss to occur upon shipment to the respective customer. The Company generally does not maintain any post-shipping obligations to the recipients of the products. No installation, calibration or testing of this equipment is performed by the Company subsequent to shipment to the customer in order to render it operational.

Product revenue includes shipping and handling revenue of $664,277, $656,571 and $669,328 in 2011, 2010 and 2009, respectively. Cost of freight for shipments made to customers is included in cost of revenue. Sales and other value-added taxes collected from customers and remitted to governmental authorities are excluded from revenue. The Company sells its products primarily through a direct sales force and through AtriCure Europe B.V. Terms of sale are generally consistent for both end-users and distributors except that payment terms are generally net 30 days for end-users and net 60 days for distributors.

Sales Returns and Allowances—The Company maintains a provision for sales returns and allowances to account for potential returns of defective or damaged products, products shipped in error and price adjustments. The Company estimates such provision quarterly based primarily on a specific identification basis, in addition to estimating a general reserve. Increases to the provision result in a reduction of revenue.

Allowance for Uncollectible Accounts Receivable—The Company evaluates the collectability of accounts receivable in order to determine the appropriate reserve for doubtful accounts. In determining the amount of the reserve, the Company considers aging of account balances, historical credit losses, customer-specific information and other relevant factors. An increase to the allowance for doubtful accounts results in a corresponding increase in expense. The Company reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables against the allowance when all attempts to collect the receivable have failed.

Inventories—Inventories are stated at the lower of cost or market using the first-in, first-out cost method ("FIFO") and consist of raw materials, work in process and finished goods. A reserve for inventory is estimated and recorded for excess, slow moving and obsolete inventory as well as inventory with a carrying value in excess of its net realizable value. Write-offs are recorded when a product is destroyed. The Company reviews inventory on hand at least quarterly and records provisions for excess and obsolete inventory based on several factors including current assessment of future product demand, anticipated release of new products into the market, historical experience and product expiration. The Company's industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of product approvals, variability in product launch strategies and variation in product utilization all impact the estimates related to excess and obsolete inventory.

Property and Equipment—Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method of depreciation for financial reporting purposes and applied over the estimated useful lives of the assets. The estimated useful life by major asset category is the following: machinery and equipment is three to seven years, computer and other office equipment is three years, furniture and fixtures is three to seven years and leasehold improvements and equipment leased under a capital lease are the shorter of their useful life or remaining lease term. Maintenance and repair costs are expensed as incurred.

Included in property and equipment are generators and other capital equipment (such as the Company's switchbox units and cryosurgical consoles) that are loaned at no cost to direct customers that use the Company's disposable products. These generators are depreciated over a period of one to three years, which approximates their useful lives, and such depreciation is included in cost of revenue. The estimated useful lives of this equipment are based on anticipated usage by our customers and the timing and impact of expected new technology rollouts by the Company. To the extent the Company experiences changes in the usage of this equipment or introductions of new technologies, the estimated useful lives of this equipment may change in a future period. Depreciation related to these generators was $1,293,922, $1,369,200 and $1,125,786 in 2011, 2010 and 2009, respectively. As of December 31, 2011 and 2010, the net carrying amount of loaned equipment included in net property and equipment in the Consolidated Balance Sheets was $1,204,422 and $1,630,163, respectively.

Impairment of Long-Lived Assets—The Company reviews property and equipment for impairment using its best estimates based on reasonable and supportable assumptions and projections. In 2011, the Company recorded charges for the impairment of property and equipment within cost of revenue and operating expense of $11,737 and $44,679, respectively. In 2010, the Company recorded a gain of $65,127 on the sale of property and equipment and a charge within operating expense of $28,523 for the impairment of property and equipment. In 2009, the Company recorded a charge within operating expense of $5,517 for the impairment of property and equipment.

Intangible Assets—Intangible assets with determinable useful lives are amortized on a straight-line basis over the estimated periods benefited, which have ranged from four to eight years.

Grant Income—The Company periodically is awarded grants to support research and development activities. The Company recognizes income under the grants as funds are earned (not as they are awarded by awarding agencies). The Company recorded grant income, as a component of other income, of $51,689, $594,762 and $0 during 2011, 2010 and 2009, respectively.

Income Taxes—Income taxes are computed using the asset and liability method in accordance with FASB ASC 740 "Income Taxes" ("ASC 740"), under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates.

The Company's estimate of the valuation allowance for deferred tax assets requires it to make significant estimates and judgments about its future operating results. The Company's ability to realize the deferred tax assets depends on its future taxable income as well as limitations on their utilization. A deferred tax asset is reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized prior to its expiration. The projections of the Company's operating results on which the establishment of a valuation allowance is based involve significant estimates regarding future demand for the Company's products, competitive conditions, product development efforts, approvals of regulatory agencies and product cost. If actual results differ from these projections, or if the Company's expectations of future results change, it may be necessary to adjust the valuation allowance.

Net Loss Per Share—Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 2,948,684, 3,408,304 and 3,164,636 stock options, restricted stock and performance based shares as of December 31, 2011, 2010, and 2009, respectively, because they are anti-dilutive. Therefore, the number of shares calculated for basic net loss per share is also used for the diluted net loss per share calculation.

Comprehensive Loss and Accumulated Other Comprehensive Income (Loss)—In addition to net loss, comprehensive loss includes foreign currency exchange rate adjustments and unrealized gains and losses on investments. The comprehensive loss for the years ended December 31, 2011, 2010 and 2009 was $5,572,645, $3,856,288 and $16,293,909, respectively.

Accumulated other comprehensive income (loss) consisted of the following:


	Unrealized Gains (Losses) on Short-Term and Long-Term Investments			Foreign Currency Translation Adjustment			Other Comprehensive Income (Loss)
Balance as of December 31, 2008	$	—		$	(56,789	)	$	(56,789	)
Current-period change		2,685			198,394			201,079

Balance as of December 31, 2009		2,685			141,605			144,290
Current-period change		(3,006	)		(61,659	)		(64,665	)

Balance as of December 31, 2010		(321	)		79,946			79,625
Current-period change		2,075			(119,217	)		(117,142	)

Balance as of December 31, 2011	$	1,754		$	(39,271	)	$	(37,517	)

Foreign Currency Transaction Losses—The Company recorded foreign currency transaction gains (losses) of $30,081, ($171,227) and ($140,593) for the years ended December 31, 2011, 2010 and 2009, respectively, in connection with partial settlements of its intercompany balance with its subsidiary.

Research and Development Costs—Research and development costs are expensed as incurred. These costs include compensation and other internal and external costs associated with the development and research related to new products or concepts, preclinical studies, clinical trials and cost of products used in trials and tests. Research and development costs totaled $11,856,821, $11,530,820 and $$11,414,889 for the years ended December 31, 2011, 2010 and 2009, respectively.

Share-Based Employee Compensation—The Company follows FASB ASC 718 "Compensation-Stock Compensation" ("ASC 718"), to record share-based compensation for all employee share-based payment awards, including stock options, restricted stock, performance shares and stock purchases related to an employee stock purchase plan, based on estimated fair values. The Company's share-based compensation expense recognized under ASC 718 for the years ended December 31, 2011, 2010 and 2009 was $2,931,290, $2,752,696 and $3,865,922, respectively, on a before and after tax basis.

FASB ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company's Consolidated Statement of Operations. The expense has been reduced for estimated forfeitures. FASB ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The Company estimates the fair value of options on the date of grant using the Black-Scholes option-pricing model ("Black-Scholes model"). The Company's determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company's stock price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include but are not limited to the Company's and the peer group's expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behaviors. For non-employee options, the fair value at the date of grant is subject to adjustment at each vesting date based upon the fair value of the Company's common stock.

The Company estimates the fair value of restricted stock and performance share awards based upon the grant date closing market price of the Company's common stock. The Company's determination of fair value is affected by the Company's stock price as well as assumptions regarding the number of shares expected to be granted and, in the case of performance shares, the likelihood that the performance measures will be achieved.

The Company also has an employee stock purchase plan ("ESPP" or the "Plan") which is available to all eligible employees as defined by the Plan. Under the ESPP, shares of the Company's common stock may be purchased at a discount. The Company estimates the number of shares to be purchased under the Plan and records compensation expense based upon the fair value of the stock at the beginning of the purchase period using the Black-Scholes model.

The Company has historically issued stock options to non-employee consultants as a form of compensation for services provided to the Company. The Company accounts for the options granted to non-employees prior to their vesting date in accordance with ASC 505-50, "Equity-Based Payments to Non-Employees." Because these options do not contain specific performance provisions, there is no measurement date of fair value until the options vest. Therefore, the fair value of the options granted and outstanding prior to their vesting date is remeasured each reporting period. During the years ended December 31, 2011, 2010 and 2009, $7,698, $19,154 and $19,675, respectively, of expense was recorded as a result of the remeasurement of these unvested stock options.

Because the non-employee options require settlement by the Company's delivery of registered shares and because the tax withholding provisions in the awards allow the options to be partially net-cash settled, these options, when vested, are no longer eligible for equity classification and are, thus, subsequently accounted for as derivative liabilities under FASB ASC 815 until the awards are ultimately either exercised or forfeited. Accordingly, the vested non-employee options are classified as liabilities and remeasured at fair value through earnings at each reporting period. During the years ended December 31, 2011, 2010 and 2009, $22,649, ($164,959) and $(140,620), respectively, of income (expense) was recorded as a result of the remeasurement of the fair value of these fully vested stock options.

Fully vested options to acquire 33,603 and 41,049 shares of common stock held by non-employee consultants remained unexercised as of December 31, 2011 and 2010, respectively. A liability of $208,007 and $268,478 was included in accrued liabilities in the Consolidated Balance Sheets as of December 31, 2011 and 2010, respectively.

Use of Estimates—The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates.

Fair Value Disclosures—The book value of the Company's financial instruments, including cash and cash equivalents, accounts receivable, short-term investments, short and long-term other assets, accounts payable, accrued expenses, other liabilities and fixed interest rate debt, approximate their fair values.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

Recent Accounting Pronouncements	12 Months Ended
Recent Accounting Pronouncements	Dec. 31, 2011
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	2. RECENT ACCOUNTING PRONOUNCEMENTS In October 2009 the FASB issued new guidance in Accounting Standards Codification ("ASC") 985, "Software," which amends the accounting and disclosure for revenue recognition. These amendments, effective for fiscal years beginning on or after June 15, 2010 (early adoption is permitted), modify the criteria for recognizing revenue in multiple element arrangements and the scope of what constitutes a non-software deliverable. The Company's adoption of the provisions of ASC 985 did not have a material impact on its consolidated financial position and results of operations. In January 2010 the FASB issued new guidance in ASC 820, "Fair Value Measurements and Disclosures," which requires reporting entities to make new disclosures about recurring or nonrecurring fair value measurements including (i) significant transfers into and out of Level 1 and Level 2 fair value measurements and (ii) information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of Level 3 fair value measurements. This new guidance is effective for interim and annual reporting periods beginning after December 15, 2009, except for Level 3 reconciliation disclosures which are effective for interim and annual periods beginning after December 15, 2010. The Company has incorporated the additional disclosures required for fair value measurements. In May 2011 the FASB issued Accounting Standards Update ("ASU") 2011-04, "Fair Value Measurement." The ASU is the result of joint efforts by the FASB and IASB to develop a single, converged fair value framework, that is, converged guidance on how (not when) to measure fair value and on what disclosures to provide about fair value measurements. While the ASU is largely consistent with existing fair value measurement principles in U.S. GAAP, it expands ASC 820's existing disclosure requirements for fair value measurements and makes other amendments. Some of the amendments could change how the fair value measurement guidance in ASC 820 is applied. The ASU is effective for interim and annual reporting periods beginning after December 15, 2011. The Company plans to adopt the additional disclosure requirements during the first quarter of 2012. In June 2011 the FASB issued new guidance in ASU 2011-05, "Presentation of Comprehensive Income," which revises the manner in which entities present comprehensive income in their financial statements. This new guidance requires entities to report components of comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. It is effective for interim and annual reporting periods beginning after December 15, 2011. The Company plans to adopt the new presentation guidance during the first quarter of 2012.

- Definition

The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.

+ References + Details

Fair Value

12 Months Ended

Dec. 31, 2011

Fair Value [Abstract]

Fair Value

3. FAIR VALUE

FASB ASC 820, "Fair Value Measurements and Disclosures," ("ASC 820") defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

•

Level 1—Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The valuation under this approach does not entail a significant degree of judgment.

•

Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The valuation technique for the Company's Level 2 assets is based on quoted market prices for similar assets from observable pricing sources at the reporting date.

•

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The fair value of the Company's Level 3 derivatives are estimated on the grant date using the Black-Scholes model and they are revalued at the end of each reporting period using the Black-Scholes model.

In accordance with ASC 820, the following table represents the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2011:


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	$	—	$	7,417,124	$	—	$	7,417,124
Commercial paper		—		399,842		—		399,842
U.S. government agencies and securities		2,507,283		—		—		2,507,283
Corporate bonds		—		1,516,638		—		1,516,638

Total assets	$	2,507,283	$	9,333,604	$	—	$	11,840,887

Liabilities:
Derivative instruments	$	—	$	—	$	208,007	$	208,007

Total liabilities	$	—	$	—	$	208,007	$	208,007


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	$	—	$	1,222,618	$	—	$	1,222,618
Commercial paper		—		2,399,038		—		2,399,038
U.S. government agencies and securities		5,836,594		—		—		5,836,594
Corporate bonds		704,207		—		—		704,207

Total assets	$	6,540,801	$	3,621,656	$	—	$	10,162,457

Liabilities:
Derivative instruments	$	—	$	—	$	268,478	$	268,478

Total liabilities	$	—	$	—	$	268,478	$	268,478

The fair value of the Level 3 liabilities is estimated using the Black-Scholes model including the following assumptions:


	As of December 31, 2011	As of December 31, 2010
Risk-free interest rate	0.12% - 0.86%	0.12% - 1.86%
Expected life of option (years)	0.97 - 5.11	0.16 - 4.71
Expected volatility of stock	71.00%	65.00%
Dividend yield	0.00%	0.00%

The Company has historically issued stock options to non-employee consultants as a form of compensation for services provided to the Company. When these non-employee options fully vest, the awards no longer fall within the scope of ASC 505-50. Because the options require settlement by the Company's delivery of registered shares and because the tax withholding provisions in the awards allow the options to be partially net-cash settled, these vested options are no longer eligible for equity classification and are accounted for as derivative liabilities under FASB ASC 815 ("Derivatives and Hedging") until the awards are ultimately either exercised or forfeited. Accordingly, the vested non-employee options are classified as liabilities and remeasured at fair value through earnings at each reporting period. In calculating the fair value of the options, they are estimated on the grant date using the Black-Scholes model subject to change in stock price utilizing assumptions of risk-free interest rate, contractual life of option, expected volatility, weighted average volatility and dividend yield. Due to the lack of certain observable market quotes the Company utilizes valuation models that rely on some Level 3 inputs. Specifically, during 2009, the Company's estimate of volatility was weighted 50% and 50% between the Company's implied volatility and the implied volatility of a group of comparable companies, respectively. During 2010, the Company's estimate of volatility was weighted 75% and 25% between the Company's implied volatility and the implied volatility of a group of comparable companies, respectively. Beginning January 1, 2011, the Company's estimate of volatility was based solely on the Company's trading history.

The following table represents the company's Level 3 fair value measurements using significant other unobservable inputs for derivative instruments as of December 31:


	2011			2010			2009
Beginning Balance	$	268,478		$	180,288		$	40,368
Total gains/losses (realized/unrealized) included in earnings		(22,649	)		164,959			140,620
Purchases (exercises)		(55,361	)		(76,769	)		—
Reclassification from equity to liability when fully vested		17,538			—			—
Expiration		—			—			(700	)

Ending Balance	$	208,007		$	268,478		$	180,288

Losses included in earnings (or changes in net assets attributable to the change in unrealized losses relating to assets held at reporting date)	$	22,649		$	(164,959	)	$	(140,620	)

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
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-Name Statement of Financial Accounting Standard (FAS)
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+ Details

Investments

12 Months Ended

Dec. 31, 2011

Investments [Abstract]

Investments

4. INVESTMENTS

As of December 31, 2011, the Company had no long-term investments. Short-term investments as of December 31, 2011 consisted of the following:


	Cost Basis		Unrealized Gains		Fair Value
U.S. Government agencies and securities	$	2,506,486	$	797	$	2,507,283
Commercial paper		399,732		110		399,842
Corporate bonds		1,515,791		847		1,516,638

Total	$	4,422,009	$	1,754	$	4,423,763

As of December 31, 2010, the Company had no long-term investments. Short-term investments as of December 31, 2010 consisted of the following:


	Cost Basis		Unrealized Gains (Losses)			Fair Value
U.S. Government agencies and securities	$	5,836,623	$	(29	)	$	5,836,594
Commercial paper		1,799,214		13			1,799,227
Corporate bonds		704,503		(296	)		704,207

Total	$	8,340,340	$	(312	)	$	8,340,028

The Company has not experienced any significant realized gains or losses on its investments in the periods presented in the Consolidated Statements of Operations.

- Definition

Tabular disclosure of investments in certain debt and equity securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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+ Details

Intangible Assets And Goodwill

12 Months Ended

Dec. 31, 2011

Intangible Assets And Goodwill [Abstract]

Intangible Assets And Goodwill

5. INTANGIBLE ASSETS AND GOODWILL

Intangible assets with definite lives are amortized over their estimated useful lives. The following table provides a summary of the Company's intangible assets with definite lives:


	Proprietary Manufacturing Technology			Non-Compete Agreement			Trade Name			Total
Net carrying amount as of December 31, 2008	$	344,778		$	82,292		$	142,083		$	569,153
Amortization		(214,000	)		(12,500	)		(55,000	)		(281,500	)

Net carrying amount as of December 31, 2009		130,778			69,792			87,083			287,653
Amortization		(130,778	)		(12,500	)		(55,000	)		(198,278	)

Net carrying amount as of December 31, 2010		—			57,292			32,083			89,375
Amortization		—			(12,501	)		(32,083	)		(44,584	)

Net carrying amount as of December 31, 2011	$	—		$	44,791		$	—		$	44,791

Amortizable intangible assets are being amortized over eight years for a non-compete arrangement. Trade name usage and proprietary manufacturing technology intangible assets were amortized over four and five year periods, respectively. For the years ended December 31, 2011, 2010 and 2009, amortization expense related to intangible assets with definite lives was $44,584, $198,278 and $281,500, respectively.

Future amortization expense related to intangible assets with definite lives is projected as follows:


Year	Amortization
2012		12,500
2013		12,500
2014		12,500
2015		7,291

Total	$	44,791

In December 2011 the Company entered into a patent purchase agreement with Nu Energy Solutions LLC in which it received proceeds of $300,000 in connection with the sale of certain intellectual property. Pursuant to the agreement, the Company agreed to sell its Bipolar Tissue Grasping Apparatus and Tissue Welding Method patent. The Company recorded the gain on sale of $300,000 in research and development expenses in the Consolidated Statements of Operations.

As a result of a reduction in the Company's market capitalization during the first quarter of 2009, the Company believed an indication of impairment existed and performed a Step 1 analysis of its goodwill in accordance with FASB ASC 350 as of March 31, 2009. The Step 1 process concluded that the carrying value of the Company's single reporting unit exceeded its estimated fair value.

To estimate the fair value of the reporting unit for Step 1, the Company utilized the market valuation approach. Under the market valuation approach the estimated fair value of the reporting unit is based on the Company's market capitalization using the closing market price of the Company's stock and number of shares outstanding as of March 31, 2009. The Company also considered a control premium that represents the estimated amount an investor would pay for a controlling interest in the Company. An income approach was also used to corroborate the results of the Step 1 test. The discounted cash flow method was used to measure the fair value of the Company's equity under the income approach. Determining the fair value using a discounted cash flow method includes assumptions about future market conditions and operating results. The judgments were based upon historical experience, current market trends and projected estimated future revenue and profit margins. The Company believed that these estimates and assumptions were reasonable and that different estimates and assumptions could have resulted in a different outcome. Determining the control premium to apply to the reporting unit is a subjective process that involves the use of estimates and judgments. The income approach supported the interim Step 1 test result using the market valuation approach in determining that the carrying value of the reporting unit exceeded the fair value.

The Company performed Step 2 of the goodwill impairment test during the three months ended June 30, 2009. Based on the results of this test, the Company concluded its goodwill was fully impaired and that the impairment of $6,812,389 (which represented the cumulative impairment since inception) on a before and after tax basis was appropriately recorded as of March 31, 2009. This impairment was recorded as an increase in operating expenses, loss from operations, and net loss in the Consolidated Statement of Operations during the three months ended March 31, 2009.

The following table provides a summary of the Company's changes in the net carrying amount of goodwill:


Net carrying amount as of December 31, 2008	$	6,812,389
Goodwill impairment		(6,812,389	)

Net carrying amount as of December 31, 2009, 2010 and 2011	$	—

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Inventories

12 Months Ended

Dec. 31, 2011

Inventories [Abstract]

Inventories

6. INVENTORIES

Inventories consisted of the following at December 31:


	2011		2010
Raw materials	$	3,233,118	$	2,574,799
Work in process		509,198		698,462
Finished goods		2,820,822		2,406,772

Inventories, net	$	6,563,138	$	5,680,033

Property And Equipment

12 Months Ended

Dec. 31, 2011

Property And Equipment [Abstract]

Property And Equipment

7. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at December 31:


	2011			2010
Machinery, equipment and vehicles	$	6,423,779		$	7,032,214
Computer and other office equipment		1,235,903			1,519,574
Furniture and fixtures		347,450			303,669
Leasehold improvements		149,672			69,094
Equipment under capital leases		267,408			207,847
Construction in progress		206,971			169,014

Total		8,631,183			9,301,412
Less accumulated depreciation		(6,280,423	)		(6,578,185	)

Property and equipment, net	$	2,350,760		$	2,723,227

Property and equipment depreciation expense was $1,877,564, $2,165,006 and $2,132,300 for the years ended December 31, 2011, 2010 and 2009, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Accrued Liabilities

12 Months Ended

Dec. 31, 2011

Accrued Liabilities [Abstract]

Accrued Liabilities

8. ACCRUED LIABILITIES

Accrued liabilities consisted of the following at December 31:


	2011		2010
Accrued commissions	$	1,297,361	$	1,178,854
Accrued settlement reserve (current portion)		703,473		486,975
Other accrued liabilities		656,147		758,127
Accrued taxes and value-added taxes payable		449,243		348,845
Accrued vacation		353,232		257,235
Accrued non-employee stock options		208,007		268,478
Accrued payroll		166,694		137,399
Accrued bonus		161,723		894,492
Accrued class action settlement reserve		—		2,000,000

Total	$	3,995,880	$	6,330,405

Indebtedness

12 Months Ended

Dec. 31, 2011

Indebtedness [Abstract]

Indebtedness

9. INDEBTEDNESS

Long-term debt and capital leases consisted of the following at December 31:


	2011		2010
Credit facility (net of discount on debt in 2010)	$	6,375,000	$	2,788,309
Capital leases		93,623		66,671

Total debt and capital leases		6,468,623		2,854,980
Less: Current maturities		1,542,848		2,193,356

Total long-term debt and capital leases	$	4,925,775	$	661,624

On May 1, 2009 the Company and SVB entered into a Loan and Security Agreement (the "Agreement") that provided for a term loan and a revolving credit facility under which the Company could borrow a maximum of $10,000,000. The Company could borrow up to $10,000,000 under the revolving loan facility with the availability subject to a borrowing base formula. On May 1, 2009 the Company borrowed the maximum amount of $6,500,000 under the term loan. In connection with the term loan, SVB received a warrant to purchase 371,732 shares of the Company's common stock at $1.224 per share, exercisable for a term of ten years (the "Warrant"). The Warrant was immediately exercisable and was exercised via a net share settlement exercise on October 6, 2009, resulting in the issuance of 276,143 shares of the Company's common stock. The Agreement also included up to a $1,000,000 sublimit for stand-by letters of credit.

On November 4, 2009, effective September 30, 2009, the Company entered into a Consent, Waiver and First Loan Modification Agreement with SVB, which amended, among other things, the financial covenants in the Agreement. On March 26, 2010, the Company entered into a Waiver and Second Loan Modification Agreement with SVB, which amended, among other things, the financial covenants in the Agreement and waived a compliance violation which occurred during February 2010.

On September 13, 2010 the Company entered into an Amended and Restated Loan and Security Agreement with SVB and an Export-Import Bank Loan and Security Agreement (the "Amended Agreement"). The Amended Agreement increased the Company's credit facility from $10,000,000 to approximately $14,000,000. The Amended Agreement also increased the Company's borrowing capacity under the revolving loan facility by expanding total availability, eliminating a Term Loan reserve requirement, adding a sublimit secured by certain of the Company's foreign accounts receivable and inventory up to $2,000,000 and adding incremental borrowing availability secured by a portion of the Company's domestic inventory. Interest on the term loan accrued at a rate of 10.0% per year, and interest on the revolving loan accrued at a fluctuating rate equal to SVB's announced prime rate of interest, subject to a floor of 4.0%, plus between 1.0% and 2.0%, depending on the Company's Adjusted Quick Ratio (as defined in the Agreement). Principal on the term loan was being paid over 36 months in equal principal payments of $180,556 plus applicable interest. The Amended Agreement was to mature on April 30, 2012 and was secured by all of the Company's assets, including intellectual property.

On March 15, 2011 the Company and SVB entered into a First Loan Modification Agreement (the "First Loan Modification Agreement") and an Export-Import Bank First Loan Modification Agreement (the "First Ex-Im Agreement" and, collectively with the First Loan Modification Agreement, the " First Modification Agreements") which set forth certain amendments to the Company's credit facility with SVB. The First Loan Modification Agreement provided for a new $7,500,000 term loan. The proceeds from the term loan were used to repay the amount outstanding under the existing SVB term loan of $2,500,000. The balance was invested in short-term investments. The new term loan has a five-year term, and principal payments in the amount of $125,000, together with accrued interest, are due and payable monthly. The modified term loan accrues interest at a fixed rate of 6.75%.

The First Modification Agreements also provide for a two-year extension of the maturity date of the existing revolving credit facility from April 30, 2012 to April 30, 2014. The applicable borrowing rate was reduced to 0.25% to 1.25% above the prime rate. The maximum borrowing amount under the revolving facility remained at $10,000,000.

On February 2, 2012 the Company and SVB entered into a Second Loan Modification Agreement (the "Second Loan Modification Agreement") and an Export-Import Bank Second Loan Modification Agreement (the "Second Ex-Im Agreement" and, collectively with the Second Loan Modification Agreement, the "Second Modification Agreements") which set forth certain amendments to the Company's credit facility with SVB. The Second Modification Agreements provided for a new $10,000,000 term loan in addition to the $10,000,000 revolving loan. The proceeds from the term loan were used to repay the amount outstanding under the existing SVB term loan of $6,125,000. The balance was invested in cash and cash equivalents and short-term investments. The new term loan has a five year term, and principal payments in the amount of $166,667, together with accrued interest, are due and payable monthly. The modified term loan accrues interest at a fixed rate of 6.75%.

The Second Modification Agreements also provided for a change to a Liquidity Ratio covenant to replace the existing Adjusted Quick Ratio covenant. The applicable borrowing rate on the revolving facility is 0.25% to 1.25%, as determined by the Liquidity Ratio.

The Amended Agreement, as modified, contains covenants that include, among others, covenants that limit the Company's and its subsidiaries' ability to dispose of assets, enter into mergers or acquisitions, incur indebtedness, incur liens, pay dividends or make distributions on the Company's capital stock, make investments or loans, and enter into certain affiliate transactions, in each case subject to customary exceptions for a credit facility of this size and type. Additional covenants apply when the Company has outstanding borrowings under the revolving loan facility or when the Company achieves specific covenant milestones. Financial covenants under the credit facility, as amended, include a minimum EBITDA, a limitation on capital expenditures, and a minimum adjusted quick ratio. Further, a minimum fixed charge ratio applies when the Company achieves specific covenant milestones. The occurrence of an event of default could result in an increase to the applicable interest rate by 3.0%, an acceleration of all obligations under the Amended Agreement, an obligation of the Company to repay all obligations in full and a right by SVB to exercise all remedies available to it under the Amended Agreement and related agreements including the Guaranty and Security Agreement. As of and for the period ended December 31, 2011, the Company was in compliance with all of the financial covenants of the amended and modified credit facility. In addition, if the guarantee by the Export-Import Bank of the United States ceases to be in full force and effect, the Company must repay all loans under the Export-Import agreement.

As of December 31, 2011 the Company had no borrowings under the revolving credit facility and borrowing availability of $8,870,413. Also as of December 31, 2011, the Company had $6,375,000 outstanding under its term loan, which includes $1,500,000 classified as current maturities of long-term debt.

The Warrant that was issued with the initial SVB agreement had been recorded as a discount on long-term debt at its relative fair value and was being amortized over the term of the loan. Accelerated amortization expense of $78,873 was recorded in March 2011 due to the credit facility modification. For the years ended December 31, 2011 and 2010, amortization expense related to the debt discount totaled $21,707 and $185,314, respectively.

In addition to the accelerated amortization of the Warrant, the Company also recorded $74,228 of expense related to deferred financing costs and other fees as a result of the credit facility modification in March 2011.

As of December 31, 2011 the effective interest rate on borrowings under the modified term loan, including debt issuance costs, was 8.0%. On June 20, 2011, the Company cancelled an outstanding letter of credit for $250,000 issued to its corporate credit card program provider which was to expire on July 31, 2011. As of December 31, 2011 no letters of credit were outstanding.

As of December 31, 2011 the Company had capital leases for computer equipment that expire at various terms through 2015. The cost of the assets under lease was $267,408. The assets are depreciated over their estimated useful lives, which equal the terms of the leases. Accumulated amortization on the capital leases was $165,743 at December 31, 2011.

Maturities on long-term debt, including capital lease obligations are as follows:


2012	$	1,542,848
2013		1,525,263
2014		1,516,310
2015		1,509,202
2016		375,000

Total maturities on long-term debt and capital lease	$	6,468,623

As of December 31, 2010, the Company had no borrowings under its revolving credit facility and borrowing availability of $8,136,523. Also as of December 31, 2010, the Company had $2,888,889 outstanding under its term loan, which included $2,166,667 classified as current maturities of long-term debt. As of December 31, 2010 the Company had an outstanding letter of credit of $250,000 issued to its corporate credit card program provider.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Commitments And Contingencies

12 Months Ended

Dec. 31, 2011

Commitments And Contingencies [Abstract]

Commitments And Contingencies

10. COMMITMENTS AND CONTINGENCIES

Operating Leases. The Company leases various types of office, manufacturing and warehouse facilities and equipment under noncancelable operating leases that expire at various terms through 2014. Future minimum lease payments under non-cancelable operating leases are as follows:


2012	$	766,891
2013		581,804
2014		16,850

Total	$	1,365,545

Rent expense was approximately $685,247, $668,219 and $793,845 in 2011, 2010, and 2009, respectively.

Royalty Agreements. The Company has certain royalty agreements in place with terms that include the payment of royalties based on product revenue from sales of current products. One royalty agreement, which was effective January 1, 2010, has a rate of 1.5% of product sales and includes minimum quarterly payments of $50,000 through 2015 and a maximum of $2,000,000 in total royalties over the term of the agreement. Another royalty agreement, which was effective in 2003 and has a term of at least twenty years, has royalty rates of 5% of product sales. Parties to the royalty agreements have the right at any time to terminate the agreement immediately for cause. Royalty expense of $505,247, $331,652 and $205,082 was recorded as part of cost of revenue for the years ended December 31, 2011, 2010 and 2009, respectively.

Purchase Agreement. On June 15, 2007 the Company entered into a purchase agreement with MicroPace Pty Ltd Inc., ("MicroPace"). The agreement, as amended, provides for MicroPace to produce a derivative of one of their products tailored for the cardiac surgical environment, known as the "MicroPace ORLab™" for worldwide distribution by the Company. Pursuant to the terms of the amended agreement, in order for the Company to retain exclusive distribution rights, the Company is required to purchase a minimum of 40 units during the period December 1, 2010 through December 31, 2011 to extend exclusivity through 2012 and an additional 40 units during 2012 to extend exclusivity through December 31, 2013. A total of 56 units were purchased by the Company between December 1, 2010 and December 31, 2011, thereby extending exclusive distribution rights through December 31, 2012. Units purchased in excess of yearly minimums reduce future minimum purchase requirements.

Distributor Termination. In July 2010 the Company terminated a distributor agreement with a European distributor. Under the terms of the agreement, the Company paid the distributor €200,000 (approximately $260,000), repurchased saleable disposable product inventory for approximately €107,000 (approximately $140,000) and paid €75,000 (approximately $98,000) for capital equipment. Additionally, the Company entered into a consulting agreement with the distributor to provide ongoing consulting services through September 30, 2012. In exchange for these services, beginning October 1, 2010, the distributor will earn €50,000 (approximately $65,000) per quarter for a total of €400,000 (approximately $520,000). Additionally, during the third quarter of 2010 the distributor earned €30,000 (approximately $40,000) for consulting services.

Legal. The Company is not party to any material pending or threatened litigation, except as described below:

Class Action Lawsuits

AtriCure, Inc. and certain of its current and former officers were named as defendants in a purported securities class action lawsuit filed in the United States District Court for the Southern District of New York

(Levine v. AtriCure, Inc., Case No. 06 CV 14324 (United States District Court for the Southern District of New York)). The suit alleges violations of the federal securities laws and seeks damages on behalf of purchasers of the Company's common stock during the period from the Company's initial public offering in August 2005 through February 16, 2006. The Company filed a motion to dismiss the lawsuit for lack of subject matter jurisdiction. This motion was denied in September 2007, and a motion for reconsideration of that denial was denied in January 2009. Although the Company admitted no wrongdoing, as of December 31, 2009, the Company recorded a liability of $2,000,000, which represented an estimate of the potential defense and/or settlement costs. In addition, the Company recorded a related receivable of $2,000,000 from its insurance carrier for the potential defense and/or settlement costs, as recovery was expected beyond a reasonable doubt. On October 22, 2010, the parties signed a Definitive Stipulation of Settlement agreement for $2,000,000, which was subject to notice to the class as well as approval by the court, which occurred in May 2011. The Company's insurance carrier paid the claim in full in June 2011.

On December 12, 2008 AtriCure, Inc. and certain of its current executive officers were named in a putative class action lawsuit which is now captioned In re AtriCure, Inc. Securities Litigation, filed in the U.S. District Court for the Southern District of Ohio, Western Division. The plaintiffs allege violations of Sections10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and seek unspecified damages against AtriCure, Inc. and certain of its current executive officers. The plaintiffs allege, among other things, that the defendants issued materially false and misleading statements that failed to disclose that the Company improperly promoted certain products to physicians and caused the filing of false claims for reimbursement. The class period alleged ran from May 10, 2007 through October 31, 2008. In July 2009 the Company filed a motion to dismiss, and in September 2009 the plaintiffs filed their memorandum in opposition to the Company's motion to dismiss, to which the Company responded on November 9, 2009. On March 29, 2010, the court granted in part and denied in part the Company's motion to dismiss and, in particular, dismissed the claim that the Company caused the filing of false claims for reimbursement. On October 7, 2010, the court ordered final approval of the settlement for $2,750,000, which was funded by the Company's insurance carrier.

Department of Justice Investigation

On October 27, 2008 the Company received a letter from the Department of Justice ("DOJ") informing the Company that it was conducting an investigation for potential False Claims Act ("FCA") and common law violations relating to its surgical ablation devices. Specifically, the letter stated that the DOJ was investigating the Company's marketing practices utilized in connection with its surgical ablation system to treat AF, a specific use outside the FDA's 510(k) clearance. The letter also stated that the DOJ was investigating whether the Company instructed hospitals to bill Medicare for cardiac surgical ablation using incorrect billing codes. The Company cooperated with the investigation and operated its business in the ordinary course during the investigation. As of December 31, 2009, the Company reached a tentative settlement with the DOJ to resolve the investigation and recorded a liability and charged operating expenses for a total of $3,955,405, which represented the net present value of the proposed settlement amount to be paid to the DOJ, the Relator, and Relator's counsel (total payments based on the settlement inclusive of interest were estimated to be $4,350,000, payable over five years).

On February 2, 2010 the settlement was finalized pursuant to the preliminary terms and the Company entered into a settlement agreement with the DOJ, the Office of the Inspector General ("OIG"), and the Relator in the qui tam complaint discussed below. The settlement agreement definitively resolved all claims related to the DOJ investigation. The Company did not admit nor will it admit to any wrongdoing in connection with the settlement. As of December 31, 2011 the Company had made $1,262,500 in payments (including interest), and had a liability related to this settlement totaling $2,933,620, of which $703,473 was classified as current.

As part of the resolution, the Company also entered into a five year Corporate Integrity Agreement with the OIG. This agreement acknowledges the existence of the Company's corporate compliance program and provides for certain other compliance-related activities during the five year term of the agreement. Those activities include specific written standards, monitoring, training, education, independent review, disclosure and reporting requirements.

Qui Tam Complaint

On July 10, 2009 a copy of a qui tam complaint against the Company was unsealed. The qui tam complaint, filed in the U.S. District Court for the Southern District of Texas, was originally filed by the Relator in August 2007. The complaint, which was related to the DOJ investigation, alleged a cause of action under the FCA relating to the Company's alleged marketing practices in connection with its surgical cardiac ablation devices. In August 2009 the DOJ declined to intervene in the qui tam complaint. The qui tam complaint was settled in February 2010 in accordance with the DOJ settlement agreement above.

The Company may from time to time become a party to additional legal proceedings.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

11. INCOME TAXES

The Company files federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. Income taxes are computed using the asset and liability method in accordance with FASB ASC 740 under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. The Company does not expect any significant unrecognized tax benefits to arise over the next twelve months.

The detail of deferred tax assets and liabilities at December 31 is as follows:


	2011			2010
Deferred tax assets:
Net operating loss carryforward	$	20,819,351		$	19,568,885
Research and development credit carryforward		3,597,046			3,265,636
Equity compensation		3,473,109			3,093,142
Intangible assets		832,021			891,977
Accruals and reserves		294,453			208,721
Inventory		270,978			16,687
Fixed assets		28,458			265,075
Other, net		1,008			1,540

Subtotal		29,316,424			27,311,663
Less valuation allowance		(29,316,424	)		(27,311,663	)

Total	$	—		$	—

The Company's provision for income taxes is as follows:


	2011			2010			2009
Current income tax expense (benefit)	$	30,888		$	19,050		$	(58,639	)
Deferred tax benefit		(2,004,762	)		(1,117,681	)		(4,027,943	)
Increase in valuation allowance		2,004,762			1,117,681			4,027,943

Total income tax expense (benefit)	$	30,888		$	19,050		$	(58,639	)

The Company has a federal net operating loss carryforward of $58,017,143 which will begin to expire in 2021 and state net operating loss carryforwards of $25,247,497 which have varying expirations ranging from 5 years to 20 years. The Company also has a foreign net operating loss carryforward of approximately $6,629,171 which will begin to expire in 2016. Additionally, the Company has a federal research and development credit carryforward of $3,597,046 which will begin to expire in 2022.

The Company's 2011, 2010 and 2009 effective income tax rates differ from the federal statutory rate as follows:


	2011						2010						2009
Federal tax at statutory rate		34.00	%	$	(1,844,367	)		34.00	%	$	(1,290,415	)		34.00	%	$	(5,628,232	)
Federal R&D credit		6.11			(331,410	)		9.03			(342,747	)		1.85			(307,050	)
Valuation allowance		(37.09	)		2,011,772			(29.45	)		1,117,681			(24.33	)		4,027,943
Goodwill impairment		—			—			—			—			(7.89	)		1,305,885
DOJ Settlement		—			—			—			—			(3.87	)		640,326
State income taxes		2.90			(157,168	)		(3.12	)		118,504			1.79			(295,697	)
Foreign NOL rate change		—			—			(3.29	)		124,915			0.30			(49,140	)
Foreign tax rate differential		(1.49	)		80,583			(3.63	)		137,929			(0.80	)		131,903
Other		(5.00	)		271,478			(4.04	)		153,183			(0.70	)		115,423

Effective tax rate		(0.57	)%	$	30,888			(0.50	)%	$	19,050			0.35	%	$	(58,639	)

The Company's pre-tax book loss for AtriCure, Inc. and its subsidiary, AtriCure Europe B.V., was ($4,529,238) and ($895,367), respectively, for 2011, ($2,240,034) and ($1,532,539), respectively, for 2010 and ($15,001,246) and ($1,552,381), respectively, for 2009.

On January 1, 2007 the Company adopted the provisions of FIN 48 (codified as ASC 740). Application of the provisions did not result in any change to the Company's tax account balances. The Company has continued to examine its tax positions and has concluded that each meets the more-likely-than-not recognition threshold of ASC 740 and is appropriately measured. The Company does not expect any significant unrecognized tax benefits to arise over the next twelve months. The Company currently has not had to accrue interest and penalties related to unrecognized tax benefits, however, when or if the situation occurs, the Company will recognize interest and penalties within the income tax expense (benefit) line in the accompanying Consolidated Statements of Operations and within the related tax liability line in the Consolidated Balance Sheets. The Company files federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. All of the Company's federal, state and foreign income tax returns open under the statutes of limitations remain subject to examination.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Concentrations	12 Months Ended
Concentrations	Dec. 31, 2011
Concentrations [Abstract]
Concentrations	12. CONCENTRATIONS During fiscal 2011, 2010 and 2009 approximately 20.9%, 19.4% and 22.0%, respectively, of the Company's total net revenue was derived from its top ten customers. During 2011, 2010, and 2009 no customer accounted for more than 10% of the Company's revenue. The Company maintains cash and cash equivalents balances which at times exceed FDIC limits. As of December 31, 2011, $9,912,360 of the cash and cash equivalents balance was in excess of the FDIC limits.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 21, 22, 24
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6327-108592

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13531-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6351-108592

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6404-108592

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6442-108592

+ Details

Related Party	12 Months Ended
Related Party	Dec. 31, 2011
Related Party [Abstract]
Related Party	13. RELATED PARTY During February 2009 the Company entered into a consulting agreement with Enable Medical Technologies, an entity founded and owned by Michael D. Hooven, the Company's co-founder and also one of its directors. Under the terms of the agreement, Enable Medical Technologies provided research and development consulting services related to product and procedural development activities. Under the agreement, Enable Medical Technologies received $216,000 as a development fee and, upon completion of certain milestones, earned an additional $15,000. The agreement expired in July 2009.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 3A
-Section 04
-Paragraph b

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

+ Details

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2011
Employee Benefit Plans [Abstract]
Employee Benefit Plans	14. EMPLOYEE BENEFIT PLANS The Company sponsors the AtriCure, Inc. 401(k) Plan, a defined contribution plan covering substantially all employees of the Company (the "Plan"). The Plan was amended effective January 1, 2009 primarily to reflect modifications to the definition of compensation and employee eligibility. The Plan was amended again effective September 1, 2011 to reflect modifications to the Plan due to a change in Plan Administrator. Eligible employees may contribute up to $16,500 of their pre-tax annual compensation (up to $22,000 for participants over age 50). During 2011, the Company made matching contributions of 25% of the first 6% of employee contributions to the Plan. Employer contributions to the Plan were suspended during 2010 and 2009. The Company's matching contributions expensed during 2011 were $221,453. Additional amounts may be contributed to the Plan at the discretion of the Company's board of directors. No such discretionary contributions were made during 2011, 2010 or 2009.

Equity Compensation Plans

12 Months Ended

Dec. 31, 2011

Equity Compensation Plans [Abstract]

Equity Compensation Plans

15. EQUITY COMPENSATION PLANS

The Company has several share-based incentive plans: the 2001 Stock Option Plan (the "2001 Plan"), the 2005 Equity Incentive Plan (the "2005 Plan") and the 2008 Employee Stock Purchase Plan (the "ESPP").

During the fourth quarter of 2009 the Company identified a computational error in the calculation of its employee share-based compensation expense for current and prior year periods after upgrading to a new version of the Company's third-party equity software. The well-known equity accounting software incorrectly calculated share-based compensation expense by inappropriately applying forfeiture rates over the vesting periods of the share awards. The correction of the error during the fourth quarter of 2009 resulted in changes to the timing of share-based compensation expense over the vesting period of the awards during the relevant periods, but did not change the cumulative share-based compensation expense related to those awards. Because share-based compensation expense is a non-cash item, there is no impact to net cash provided by operations in any period. The cumulative impact of the error was $495,629, which was included in operating expenses within the 2009 Consolidated Statement of Operations.

The Company believes the correction of this error is not material to its previously issued historical consolidated financial statements and the Company does not plan to restate prior periods that were impacted by this error.

2001 Plan and 2005 Plan

The 2001 Plan is no longer used for granting incentives. Under the 2005 Plan, the Board of Directors may grant incentive stock options to employees and any parent or subsidiary's employees, and may grant nonstatutory stock options, restricted stock, stock appreciation rights, performance units or performance shares to employees, directors and consultants of the Company and any parent or subsidiary's employees, directors and consultants. The administrator (currently the Compensation Committee of the Board of Directors) has the power to determine the terms of any awards, including the exercise price of options, the number of shares subject to each award, the exercisability of the awards and the form of consideration.

Options granted under the 2001 Plan and the 2005 Plan generally expire 10 years from the date of grant. Options granted from the 2001 Plan are generally exercisable beginning one year from the date of grant in cumulative yearly amounts of 25% of the shares granted. Options granted from the 2005 Plan generally vest at a rate of 25% on the first anniversary date of the grant and ratably each month thereafter. Certain options granted were exercisable at the time of the grant and the underlying unvested shares are subject to the Company's repurchase rights as stated in the applicable plan agreement.

As of December 31, 2011 5,812,198 shares of common stock had been reserved for issuance under the 2005 Plan. The shares authorized for issuance under the 2005 Plan include (a) shares reserved but unissued under the 2001 Plan as of August 10, 2005, (b) shares returned to the 2001 Plan as the result of the termination of options or the repurchase of shares issued under such plan, and (c) annual increases in the number of shares available for issuance on the first day of each year equal to the lesser of:

•

3.25% of the outstanding shares of common stock on the first day of the fiscal year;

•

825,000 shares; or

•

an amount the Company's Board of Directors may determine.

On January 1, 2011 an additional 509,067 shares were authorized for issuance under the 2005 Plan, representing 3.25% of the outstanding shares on that date. As of December 31, 2011 there were 1,006,592 shares available for future grants under the plans.

Activity under the plans during 2011 was as follows:


Stock Options	Number of Shares Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2011		2,787,354		$	7.82
Granted		263,500		$	12.26
Cancelled or forfeited		(78,089	)	$	8.06
Exercised		(436,992	)	$	3.63

Outstanding at December 31, 2011		2,535,773		$	9.00		5.72	$	6,666,735

Vested and expected to vest		2,513,923		$	8.98		5.69	$	6,634,987

Exercisable at December 31, 2011		1,969,803		$	9.07		4.94	$	5,001,966


Restricted Stock	Number of Shares Outstanding			Weighted Average Grant Date Fair Value
Outstanding at January 1, 2011		371,700		$	4.39
Awarded		188,500		$	11.61
Forfeited		(37,587	)	$	5.75
Released		(119,702	)	$	4.27

Outstanding at December 31, 2011		402,911		$	7.68

Activity under the plans during 2010 was as follows:


Stock Options	Number of Shares Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2010		2,533,977		$	8.20
Granted		447,750		$	5.58
Cancelled or forfeited		(109,369	)	$	10.32
Exercised		(85,004	)	$	4.16

Outstanding at December 31, 2010		2,787,354		$	7.82		5.96	$	8,490,966

Vested and expected to vest		2,750,555		$	7.85		5.92	$	8,335,814

Exercisable at December 31, 2010		2,024,371		$	8.23		5.00	$	5,667,075


Restricted Stock	Number of Shares Outstanding			Weighted Average Grant Date Fair Value
Outstanding at January 1, 2010		360,909		$	3.26
Awarded		162,600		$	5.69
Forfeited		(5,300	)	$	3.17
Released		(146,509	)	$	3.09

Outstanding at December 31, 2010		371,700		$	4.39

The total intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009 was $3,403,031, $311,542 and $65,403, respectively. As a result of the Company's tax position, no tax benefit was recognized related to the stock option exercises. For 2011, 2010 and 2009, $1,588,065, $353,356 and $33,335, respectively, in cash proceeds was included in the Company's Consolidated Statements of Cash Flows as a result of the exercise of stock options. The total fair value of performance shares vested during 2011 was $1,243,200. The total fair value of restricted stock vested during 2011, 2010 and 2009 was $1,456,941, $980,683 and $1,246,247, respectively.

The exercise price per share of each option is equal to the fair market value of the underlying share on the date of grant. The Company issues registered shares of common stock to satisfy stock option exercises and restricted stock grants.

The Company recognized expense related to stock options and restricted stock for 2011, 2010, and 2009 of $2,617,402, $2,178,338 and $3,577,317, respectively. As of December 31, 2011 there was $5,481,943 of unrecognized compensation costs related to non-vested stock option and restricted stock arrangements ($2,860,355 relating to stock options and $2,621,588 relating to restricted stock). This cost is expected to be recognized over a weighted-average period of 2.1 years for stock options and 1.5 years for restricted stock.

The Company has issued performance shares to certain employees and consultants to incent and reward them for the achievement of specified performance over various service periods. The participants receive awards for a specified number of shares of the Company's common stock at the beginning of the award period, which entitles the participants to the shares at the end of the award period if achievement of the specified metrics and service requirements occurs. During the first quarter of 2011 111,000 performance shares (gross) were released related to the participants' achievement of certain specified metrics. During the first quarter of 2012 10,000 shares of common stock were issued due to the participants meeting all of the specified metrics. In accordance with FASB ASC 718, the Company estimates the number of shares to be granted based upon the probability that the performance metric and service period will be achieved. The fair value of the estimated award, based on the market value of the Company's stock on the date of award, is expensed over the award period. The probability of meeting the specified metrics is reviewed quarterly. During 2011 and 2010 the Company recognized expense related to the performance shares of $40,400 and $380,337, respectively. As of December 31, 2011 there was no unrecognized compensation cost related to non-vested share-based compensation arrangements associated with performance shares.

Employee Stock Purchase Plan (ESPP)

During the second quarter of 2008 the Company established its 2008 Employee Stock Purchase Plan ("ESPP") which is available to eligible employees as defined in the ESPP. Under the ESPP, shares of the Company's common stock may be purchased at a discount (currently 15%) of the lesser of the closing price of the Company's common stock on the first trading day or the last trading day of the offering period. The offering period (currently six months) and the offering price are subject to change. Participants may not purchase more than $25,000 of the Company's common stock in a calendar year and, effective January 1, 2009, may not purchase more than 1,500 shares during an offering period. Beginning on January 1, 2009 and on the first day of each fiscal year thereafter during the term of the ESPP, the number of shares available for sale under the ESPP shall be increased by the lesser of (i) two percent (2%) of the Company's outstanding shares of common stock as of the close of business on the last business day of the prior calendar year, not to exceed 600,000 shares, or (ii) a lesser amount determined by the Board of Directors. At December 31, 2011, there were 862,902 shares available for future issuance under the ESPP, including 313,272 shares approved for issuance by the Company's Board of Directors effective January 1, 2011. Share-based compensation expense with respect to the ESPP was $273,488, $194,021 and $103,191 for 2011 and 2010, and 2009, respectively.

Valuation and Expense Information Under FASB ASC 718

The following table summarizes share-based compensation expense related to employee share-based compensation under FASB ASC 718 for 2011, 2010 and 2009. This expense was allocated as follows:


	2011		2010		2009
Cost of revenue	$	161,331	$	146,154	$	284,817
Research and development expenses		473,781		537,221		757,660
Selling, general and administrative expenses		2,296,178		2,069,321		2,823,444

Total	$	2,931,290	$	2,752,696	$	3,865,921

In calculating compensation expense, the fair value of the options is estimated on the grant date using the Black-Scholes model including the following assumptions:


	2011	2010	2009
Risk-free interest rate	1.59 - 2.78%	1.79 - 2.88%	2.07 - 3.08%
Expected life of option (years)	6.00 to 6.25	6.00 to 6.25	6.00 to 6.25
Expected volatility of stock	71.00 - 72.00%	66.00 - 71.00%	53.50 - 62.00%
Weighted-average volatility	71.58%	69.30%	60.43%
Dividend yield	0.00%	0.00%	0.00%

For grants made before December 31, 2010 the Company's estimate of volatility was weighted between the Company's trading history and other companies in the industry. Beginning January 1, 2011 the Company's estimate of volatility is based solely on the Company's trading history. The risk-free interest rate assumption is based upon the U.S. treasury yield curve at the time of grant for the expected option life. The simplified method is utilized in determining the expected life of the option. The Company uses this method because it does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term due to the limited period of time its equity shares have been publicly traded.

The fair value of restricted stock awards is based on the market value of the Company's stock on the date of the awards.

Based on the assumptions noted above, the weighted average estimated fair value per share of the stock options and restricted stock granted for 2011, 2010 and 2009 was as follows:


	2011		2010		2009
Stock options	$	8.01	$	3.59	$	1.53
Restricted stock		11.61		5.69		2.48

Non-Employee Stock Compensation

The Company has issued nonstatutory common stock options to consultants to purchase shares of common stock as a form of compensation for services provided to the Company. Such options vest over a service period ranging from immediately to four years. After January 1, 2006 all stock options to non-employee consultants have a four year vesting period and vest at a rate of 25% on the first anniversary date of the grant and ratably each month thereafter.

The fair value at the date of grant, which is subject to adjustment at each vesting date, was determined using the Black-Scholes model. There were no non-employee stock options granted during 2011 and 2010. The values attributable to the non-vested portion of the non-employee stock options have been amortized over the service period on a graded vesting method and the vested portion of these stock options was remeasured at each vesting date.

The Company accounts for the options granted to non-employees prior to their vesting date in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. Because these options do not contain specific performance provisions, there is no measurement date of fair value until the options vest. Therefore, the fair value of the options granted and outstanding prior to their vesting date is remeasured each reporting period. Stock compensation expense with respect to unvested non-employee stock options totaled $7,698, $19,154 and $19,675 for 2011, 2010 and 2009, respectively.

Once these non-employee stock option grants have fully vested, the awards no longer fall within the scope of ASC 505-50. Because the stock options require settlement by the Company's delivery of registered shares and because the tax withholding provisions in the awards allow the stock options to be partially net-cash settled, these vested stock options are no longer eligible for equity classification and are, thus, accounted for as derivative liabilities under FASB ASC 815 until the stock options are ultimately either exercised or forfeited. Accordingly, the vested non-employee stock options are classified as liabilities and remeasured at fair value through earnings at each reporting period. During 2011, 2010 and 2009, $22,649, ($164,959) and ($140,620), respectively, of income (expense) was recorded as a result of the remeasurement of the fair value of these stock options. As of December 31, 2011 and 2010, respectively, fully vested stock options to acquire 33,603 and 41,049 shares of common stock held by non-employee consultants remained unexercised and a liability of $208,007 and $268,478 was included in accrued liabilities in the Consolidated Balance Sheets as of December 31, 2011 and 2010, respectively.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

+ Details

Segment And Geographic Information

12 Months Ended

Dec. 31, 2011

Segment And Geographic Information [Abstract]

Segment And Geographic Information

16. SEGMENT AND GEOGRAPHIC INFORMATION

The Company considers reporting segments in accordance with FASB ASC 280, "Segment Reporting." The Company develops, manufactures, and sells devices designed primarily for the surgical ablation of cardiac tissue for the treatment of atrial fibrillation and systems designed for the exclusion of the left atrial appendage. These devices are developed and marketed to a broad base of medical centers in the United States and internationally. Management considers all such sales to be part of a single reportable segment.

Geographic revenue was as follows:


Revenue:	2011		2010		2009
United States	$	48,931,420	$	47,517,886	$	44,119,201
International		15,470,989		11,488,302		10,414,357

Total	$	64,402,409	$	59,006,188	$	54,533,558

Substantially all of the Company's long-lived assets are located in the United States.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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+ Details

Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2011

Selected Quarterly Financial Data [Abstract]

Selected Quarterly Financial Data

17. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

(Dollars in thousands, except per share data)


	For the Three Months Ended
	March 31,						June 30,						September 30,						December 31,
	2011			2010			2011			2010			2011			2010			2011			2010
Operating Results:
Revenue	$	15,637		$	13,952		$	16,780		$	14,192		$	15,222		$	14,473		$	16,764		$	16,389
Gross profit		11,893			10,679			12,277			11,229			11,085			11,174			11,741			12,306
Loss from operations		(1,074	)		(1,690	)		(771	)		(666	)		(1,191	)		(831	)		(1,695	)		(238	)
Net income (loss)		(1,273	)		(2,009	)		(947	)		(765	)		(1,156	)		(1,029	)		(2,079	)		12
Net income (loss) per share (basic and diluted)	$	(0.08	)	$	(0.13	)	$	(0.06	)	$	(0.05	)	$	(0.07	)	$	(0.07	)	$	(0.13	)	$	0.00

Amounts may not sum to consolidated totals for the full year due to rounding. Basic and diluted net loss per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts will not necessarily equal the total for the year.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Valuation And Qualifying Accounts

12 Months Ended

Dec. 31, 2011

Valuation And Qualifying Accounts [Abstract]

Valuation And Qualifying Accounts

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS


	Beginning Balance		Additions		Deductions		Ending Balance
Allowance for doubtful accounts receivable
Year ended December 31, 2011	$	8,764	$	28,836	$	906	$	36,694
Year ended December 31, 2010		24,400		7,987		23,623		8,764
Year ended December 31, 2009		40,480		—		16,080		24,400

Reserve for sales returns and allowances
Year ended December 31, 2011	$	53,353	$	52,000	$	65,353	$	40,000
Year ended December 31, 2010		3,445		55,353		3,445		53,353
Year ended December 31, 2009		71,251		—		67,806		3,445

Allowance for inventory valuation
Year ended December 31, 2011	$	31,506	$	311,274	$	136,468	$	206,312
Year ended December 31, 2010		183,170		46,617		198,281		31,506
Year ended December 31, 2009		183,895		25,346		26,071		183,170

Valuation allowance for deferred tax assets
Year ended December 31, 2011	$	27,311,663	$	2,004,762	$	—	$	29,316,425
Year ended December 31, 2010		26,193,982		1,117,681		—		27,311,663
Year ended December 31, 2009		22,166,000		4,028,000		—		26,194,000